Technical analysis for FTSE 100 for 12th February 2025
The bulls have managed to hang in there and we could well be on for a test of the 8800 level today, and possibly even a push towards the 8842 resistance level if they can keep the momentum going. The slight spanner in the works is the fact that the 2h chart has gone bearish and has Hull MA resistance at 8803 to start with so that will be the first major hurdle.
The main news event will be the US inflation figures out at 13:30, with Powell continuing his testimony at 15:00. Both of which will have a bearing on the future path for US interest rates, and in turn the UK as well (though likely May for our next cut I expect, depending on how decimated the UK economy is by then).
Initial support for today is at the daily pivot level at 8775 and I would like to see any early test of this hold to set up the bounce towards the 8800+ levels.
If the bears break the daily pivot then yesterday's low at 8750 is next up, and just below S1 for today, but a break of this will then likely see the bears targeting the 8733 level where we have S2 and the 30m 200ema. If it were to get this low today then a long here is worth a go. Especially as 8758 is also the 2h green coral which we haven't tested yet, so any overshoot of that should in theory bounce back.
On the upside, 8803 is the first level to watch for as mentioned, and then the 8817 R2 above that. However I would like to see a rise to test the 8842 daily resistance level today really, as we also have the R3 here for today, and it would also help generate some more positive headlines. Also don't forget that we are highly likely to test 9000 this year and to do that in Q1 or Q2 would be a a relief for the government given all the negativity,
I don't expect the price to break higher than 8845 today though, but if it were to do so then 8867 is the next level on the radar.
The S&P500 looks set for a rise towards the 6102 level where we have the R2 and key fib levels but it's dependant on the 6060 level holding. The bulls defended the 6040 level yesterday very well so they will be looking to capitalise on that and keep the move upwards going, A break of the 6056 support today will therefore see a retest of that 6040, and possibly a dip down to the 6020 area. Above 6102 then 6126 is the R3 and next likely resistance level.
Likewise, the Dax40 looks set for a rise towards the 22190 level where we have the key fib and the R1 level, and again its dependant on the daily pivot holding as support at the 22033 level. A break of that will likely see a slide down to the 21900 level - but with the key fib and 30m 200ema here then a long here is also worth a go. Above 22200 then look for 22270.
Good luck today.
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